2021 Tax Season to begin on February 12, 2021

 

2021 tax filing season set to begin February 12

The IRS will begin accepting and processing 2020 tax year returns on Friday, Feb.12, 2021.

Please contact our office to prepare your 2020 tax return.  We can accept your tax documents either virtually or in person.  We also offer curb-side document drop off and pick up.  Call our office to schedule an appointment or drop off your tax documents at your convenience.  718-227-6035 for details. www.gosucpa.com

People who are ready to file can begin filing their tax returns as soon as they have all of their 2020 tax documents. Our office is accepting tax documents and will prepare completed tax returns now and hold them until the IRS begins processing returns on Friday, Feb.12. The quickest way for taxpayers to get a tax refund is by filing electronically and choosing direct deposit for their refund.

Most earned income tax credit or advanced child tax credit related refunds should be available in taxpayer bank accounts or on debit cards by the first week of March, if they choose direct deposit and there are no other issues with their tax return.

By law, the IRS cannot issue refunds before mid-February for tax returns that claim the earned income tax credit or ACTC. The IRS must hold the entire refund — even the portion not associated with EITC or ACTC. This helps ensure taxpayers receive the refund they deserve and gives the agency more time to detect and prevent errors and fraud.

To make filing easier, taxpayers should:

• File electronically and use direct deposit for the quickest refunds.
• Check IRS.gov for the latest tax information. There is no need to call the IRS.

Those who may have been eligible for stimulus payments should carefully review their eligibility for the recovery rebate credit. Most people received Economic Impact Payments automatically and those who received the maximum amount don’t need to include any information about their payments when they file.

They received the full amounts of both Economic Impact Payments if:

• Their first Economic Impact Payment was $1,200 for individuals; $2,400 married filing jointly for 2020, plus $500 for each qualifying child born in 2020.
• Their second Economic Impact Payment was $600 for individuals; $1,200 married filing jointly for 2020, plus $600 for each qualifying child born in 2020.

People who didn't receive the payments or only received partial payments may be eligible to claim the recovery rebate credit when they file their 2020 tax return, even if they are normally not required to file a tax return. Our tax preparation software will help taxpayers figure the amount.

Taxpayers should remember that stimulus payments they received are not taxable, and don’t reduce the amount of their refund.

Important filing season dates

Friday, Feb. 12. IRS begins 2021 tax season. Individual tax returns start being accepted, and processing begins.
Thursday, April 15. Due date for filing 2020 tax returns or requesting extension of time to file.
Thursday, April 15. Due date for paying 2020 tax owed to avoid owing interest and penalties.
Friday, Oct. 15. Due date to file for those requesting an extension on their 2020 tax returns.

Bookkeeping requirements for Tax Compliance and Other Business Needs

 

Do I need a Bookkeeper? What does a Bookkeeper do?

Bookkeepers are responsible for recording and maintaining a business’ financial transactions, such as purchases, expenses, sales revenue, deposits, credit card transactions, invoices, and payments. The bookkeeper will record financial data into general ledgers, which are used to produce the balance sheet and income statement. The bookkeeper is generally responsible for overseeing the first six steps of the Accounting Cycle, while the last two are typically taken care of by an Certified Public Accountant (CPA).

Bookkeepers lay the groundwork for accountants to analyze and prepare the financial statements. Bookkeepers use software, such as Quickbooks or Sage,  to assist with the recording of transactions and generally use built-in data processing tools to help in the preparation of the general ledger.

If you require assistance with your bookkeeping, our office can supplement your existing team.  For example, your team may want to control the bank deposits, payroll, and bill payment.  We can handle what accounting items are left.  Call today for a free consultation. 718-227-6035 ext. 301, info@gosucpa.com, or visit us at Staten Island CPA

E-Commerce CPA - Provides expert information regarding E-Commerce businesses

 E- Commerce advice from a Staten island, NY CPA

E Commerce  is defined as "commercial transactions conducted electronically on the internet."

There are four traditional types of ecommerce, including B2C (Business-to-Consumer), B2B (Business-to-Business), C2B (Consumer-to-Business) and C2C (Consumer-to-Consumer). There's also B2G (Business-to-Government), but it is often lumped in with B2B.

There are many platforms, and these are ever changing and expanding. Some include:

Ebay

Etsy

Amazon

Zuilly

Businesses also often sell direct thru their own website or platform.

Where you sell or what you sell can be equally important to your business model. Finding your target audience is as important as finding the right product or service to sell.

Concerns you may have for your e-commerce business:

Physical nexus vs Economic Nexus

Sales tax

Income Tax

State Tax

Inventory

Costs Accounting

Our Staten Island, NY office of Certified Public Accountants (CPA) is only a phone call away.

We can assist you with bookkeeping, tax preparation, business plans, and advice for business development. We work with clients at your place of business, our office, or remotely.

Goldenthal & Suss Consulting PC

David C Egan, CPA

4218 Amboy Rd

Staten Island, NY 10308

718-227-6035

www.gosucpa.com

Update from the IRS

 Eligible Paycheck Protection Program expenses now deductible

WASHINGTON – The Treasury Department and the Internal Revenue Service issued guidance today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP).

Today’s guidance, Revenue Ruling 2021-02, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27, 2020.

The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient’s covered loan. This change applies for taxable years ending after March 27, 2020.

Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.

For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov